The situation: Uncertainty continues to weigh on US retail and trade following the Supreme Court’s ruling that President Donald Trump lacks emergency authority under the International Emergency Economic Powers Act (IEEPA) to impose many of his administration’s tariffs.

The details: Hours after the decision, Trump signed a proclamation imposing a temporary 10% global import duty under Section 122 of the Trade Act of 1974, with exemptions for certain agricultural goods and electronics, passenger vehicles and many auto parts, as well as books and informational products. The following day, he said on social media that the new tariff would rise to 15%—the legal maximum—and that the increase would take effect immediately, replacing many duties invalidated by the Court. However, as of two days later, the formal proclamation had not been updated to reflect that change.

US Customs and Border Protection continued collecting IEEPA tariffs until 12:01 a.m. EST on February 23—more than three days after the Supreme Court declared them unlawful.

Meanwhile, the EU froze ratification of its trade deal with the US, prompting Trump to warn that countries that backtrack on agreements “will be met with a much higher Tariff, and worse …” (sic)

US Trade Representative Jamieson Greer said the administration will use Section 122 and other powers—including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974—to preserve as many tariffs as possible.

The broader landscape: Governors JB Pritzker of Illinois and Gavin Newsom of California called for refunds following the ruling, though the Court did not address refund obligations. The tariffs generated more than $160 billion in revenues from companies importing foreign goods, according to the Tax Foundation, and were projected to raise roughly $1.4 trillion from 2026 through 2035 had they remained in effect.

Administration officials have said any refund process would likely face prolonged litigation. That means even if refunds are ultimately issued, they are unlikely to provide any meaningful near term macroeconomic boost.